TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appellate Tribunal allows Department's appeal on Cenvat credit eligibility, emphasizes need for thorough review</h1> <h3>COMMISSIONER OF C. EX., ALLAHABAD Versus BASTI SUGAR MILLS</h3> COMMISSIONER OF C. EX., ALLAHABAD Versus BASTI SUGAR MILLS - 2010 (262) E.L.T. 941 (Tri. - Del.) Issues:- Appeal against the order of the Commissioner (Appeals) upholding the original authority's decision in favor of the assessee regarding Cenvat credit on certain items.- Whether the items in question qualify as capital goods for availing Cenvat credit.- Interpretation of the nature of use of MS plates, MS ingots, and MS channels in fabricating parts and machinery.- Disagreement between the Department and the Commissioner (Appeals) on the eligibility of Cenvat credit.- Application of the decision of the Larger Bench of the Tribunal in the case of Vandana Global Ltd.- Consideration of the principles laid down by the Hon'ble Supreme Court in relevant cases.Analysis:The appeal before the Appellate Tribunal CESTAT NEW DELHI arose from the Department challenging the order of the Commissioner (Appeals) upholding the original authority's decision in favor of the assessee regarding the availing of Cenvat credit on certain items. The respondent, a manufacturer of VP sugar molasses, was alleged to have taken credit on MS plates, MS ingots, and MS channels as capital goods, which the Department contended did not fall under that category. The original authority accepted the respondent's explanation that these items were essential for the manufacturing process and dropped the proceedings initiated by the show cause notice. The Department, however, filed an appeal against this decision.During the proceedings, the Department argued that the items were not used in the manufacture of capital goods as claimed by the respondent and cited a similar case for comparison. On the other hand, the respondent's advocate pointed out that the show cause notice did not mention the items being used for repair and maintenance, and bringing up a new case was impermissible as per relevant Supreme Court decisions.The Tribunal carefully considered the submissions and found that while the items in question did not inherently qualify as capital goods, their eligibility for Cenvat credit depended on their use in fabricating parts and machinery. The Tribunal noted that the records did not conclusively establish the specific use of the items in question and observed that the Commissioner (Appeals) had accepted the original authority's finding without further evaluation. In light of this, the Tribunal decided to set aside the orders of the Commissioner (Appeals) and the original authority and remand the matter for fresh consideration. The Tribunal emphasized the need for a thorough review, considering the decision of the Larger Bench in the case of Vandana Global Ltd.In conclusion, the appeal was allowed by way of remand, and the cross objection was also disposed of. The Tribunal maintained that all issues were to be kept open for further examination by the original authority after granting both parties a reasonable opportunity to present their case.
TaxTMI 